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The following present value factors are provided for use in this problem. Present Value Present Value of an: Periods of $1 at 6% Annuity of $1 at 6% 1 0.9434 0.9434 2 0.8900 1.8334 3 0.8396 2.6730 4. 0.7921 3.4651 Finch Co. wants to purchase a machine for $40,200, but needs to earn a 6% return. The expected year-end net cash flows are $17,000 in each of the first three years, and $12,000 in the fourth year.. What is the machine's net present value (round the final answer to the nearest whole dollar)?

The following present value factors are provided for use in this problem. Present Value Present Value of an: Periods of $1 at 6% Annuity of $1 at 6% 1 0.9434 0.9434 2 0.8900 1.8334 3 0.8396 2.6730 4. 0.7921 3.4651 Finch Co. wants to purchase a machine for $40,200, but needs to earn a 6% return. The expected year-end net cash flows are $17,000 in each of the first three years, and $12,000 in the fourth year.. What is the machine's net present value (round the final answer to the nearest whole dollar)?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following present value factors are provided for use in this problem. Present Value Present Value of an Periods of $1 at 6% Annuity of $1 at 6% 1 0.9434 0.9434 0.8900 1.8334 3. 0.8396 2.6730 4. 0.7921 3.4651 Finch Co. wants to purchase a machine for $40,200, but needs to earn a 6% return. The expected year-end net cash flows are $17,000 in each of the first three years, and $12,000 in the fourth year. What is the machine's net present value (round the final answer to the nearest whole dollar)?
Transcribed Image Text:The following present value factors are provided for use in this problem. Present Value Present Value of an Periods of $1 at 6% Annuity of $1 at 6% 1 0.9434 0.9434 0.8900 1.8334 3. 0.8396 2.6730 4. 0.7921 3.4651 Finch Co. wants to purchase a machine for $40,200, but needs to earn a 6% return. The expected year-end net cash flows are $17,000 in each of the first three years, and $12,000 in the fourth year. What is the machine's net present value (round the final answer to the nearest whole dollar)?
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